Tenants can charge rent with AMEX agreement

Real Estate Weekly, July 16, 2003 by Elaine Misonzhnik

On July 10, Related Rentals, a division of The Related Companies, launched a new program within its portfolio -- rent payment through credit cards.

As a result of an agreement with American Express, Related Rentals will now allow the residents who hold this credit card to charge their rent.

"The world is changing and the lifestyles of our customers are different than they were in the past," said David Wine, vice chairman of The Related Companies.

"In order to be successful, we have to rethink the rental needs of our customers. The way people manage their money is different today, yet landlords never addressed that fact. As part of our RelatedStyle Services, our residents will now have the opportunity to pay rent by using their credit cards."

As an added bonus, tenants paying with American Express can participate in its rewards program, which will add benefit points to their account every time they pay their rent. The points can be used to pay for travel, entertainment, and retail expenses.

According to Glenda McNeal, vice president and general manager of industry development at American Express, one year of rent payments could amount to a trip to Ireland for two.

"It's only natural to launch this revolutionary new service in the New York luxury market," she said. "Rent payment by credit card is a unique amenity.

It will build loyalty, increase retention, and differentiate the properties that offer this service. It will also offer built-in financial benefits for the landlords. It will mean faster payment and no more cancelled checks."

Rent payment through credit cards is only one feature of The Related's new service program. Its residents will also benefit from a free transfer option, which will allow them to move into any available Related apartment within a month of leaving their previous residence, a personal assistant, who will help them run small errands, and a residents' web site.

"Our goal in developing these services was to enrich the lives of our customers," said Wine. "All of our newest buildings will provide these services."

As part of the launching ceremony for the American Express payment plan, two of the tenants at Related's The Westport building, paid their August rent using their credit cards.